*This plan includes only advisory and no filing happens in the purview of this plan.

Income Tax Return Filing: An Overview

What is an income tax return?

An income tax return is a form where taxpayers declare their taxable income, deductions, and tax payments. This procedure of filing income tax returns is referred to as income tax filing. While filing the actuals, the total amount that should go to the government as income tax is calculated. If you've paid more tax than needed for the financial year, you'll be refunded by the income tax department. Sometimes, you may also see that you have underpaid taxes for the year. In such cases, you must pay the remainder of the tax, and file your income tax returns. Income tax return form ranges from ITR 1 to ITR 7, used for different types of income. Some income tax return forms are longer than the others, and they may need additional disclosures such balance sheet and a profit and loss statement information.

Why do you have to file income tax returns?

Irrespective of whether you live in India currently or not, filing an income tax return is compulsory, if your total Indian income exceeds Rs.2,50,000. Even if you don't meet the Rs.2,50,000 threshold, it's a good practice to file or e-file your income tax return. An income tax return is an important document that you must produce at the time of availing a home loan, as it reflects your financial prosperity. An income tax return—as a proof of income—shows your capacity to repay a loan. If you are planning to go abroad for higher studies, or are about to take up a job outside of India, you'll need at least three years' filed income tax returns to show as proof of income. People processing your visa application may request for this financial information to evaluate your financial health, which in return shows that you can support yourself on your own in their country.

How can you file an income tax return in India?

You can file your income tax returns online, either on the income tax department's website or with us on www.cleartax.in. Income Tax filing or efilling is made easy on Cleartax.in. You can e-file your returns within just 7 minutes! Also note that the deadline for efiling your income tax returns for assessment year 2018-2019 is on or before July 31, 2018.

What are the details you need when you're efiling your income tax returns?

- You'll need to produce basic information such as PAN, Aadhar card number, and current address. - Details about all the bank accounts you've held in the given financial year. This is a mandatory disclosure you must make for e filing your income tax returns. - Details about your income from salary, fixed deposits, savings bank account, etc. - Information of all the deductions you've claimed under Section 80. - You'll also need to produce tax payment information such as TDS and advance tax payments.

Can I file Tax Returns for years before 2014 online?

Yes, in any given financial year, you can file for the last two years. For e.g in FY 2016-17, you can file for both FY 2015-16 and FY 2014-15 online.

What’s the next step after you’ve e-filed your income tax returns?

Once you’ve filed your tax returns online, you will see a 15-digit acknowledgement number on the screen confirming your submission. You must then verify your tax return. This can be done from most Netbanking accounts.

Income Tax Efiling Process: A Step-By-Step Guide

For FY 2017-18, if your income exceeds Rs.2,50,000 (Rs.3,00,000 if you are 60 years or older) you must file an income tax return in India. You must also file a tax return if excess TDS has been deducted and you want to claim a refund. Paper return or e-filing of income tax? If your income is greater than 5 lakhs, or you are seeking a refund, you must file your income tax return online. An exception is made when the individual taxpayer is 80 years or older.

The documents needed to e-file your tax return will vary case to case.Typically, you'd need just a Form 16 and Form 26AS. You’ll need: - Basic details such as PAN, Aadhaar number, and bank account information - Documents related to your income such as Form 16 or Form 16A - Form 26AS which contains information about TDS and advance tax payments

Note that the income tax return is an annexure-less form. This means that no supporting documents need to be sent along with your tax return. But do store them carefully. This will help in case the income tax department has any questions about your tax return.

Every company in India issues Form 16 for all its employees, typically in the last week of May and first two weeks of June. You may receive them in a PDF or get them as 2 seperate PDFs. Part A of the Form 16 contains all the details related TDS and the company’s TAN. Part B contains key information about allowances such HRA, LTA, your taxable salary, and deductions you’ve declared at the time of investment submission.

All you have to do is upload them on ClearTax.com, and it will automatically read your income, deductions, TDS, and pre-fill your income tax return! Upload Form 16. If you don’t have a Form 16, you can still prepare a tax return with just a payslip.

Claim missed out deductions and check if you have to pay tax.

You can claim HRA, LIC premium and any other Section 80C expense or deduction you've missed. Medical reimbursements and LTA cannot be claimed. If you missed the investment submission proof deadline in office, then while e-filing your return on ClearTax, you can claim HRA, LIC premium, and any other Section 80C expense or deduction that you’ve missed to tell your company. This will lower your tax liability. Do note that medical reimbursements and LTA cannot be claimed. Read: What should you do if you’ve missed submitting investment submission proof deadline?

Pay tax on the Department website if needed.

The tax is calculated as you are filing your tax return. If you find that you need to pay additional tax, you must pay the tax first and then e-file your tax return. Both of these needs to be done before July 31st.
If you don’t pay this tax before July 31st, you will be charged an interest amount of 1% per month (simple interest) on the tax amount outstanding. This interest will be calculated from the due date applicable to you for filing of return of the applicable year till the date that you actually file your income tax return. Read: How to pay tax online on the Department website?

Double check all the details and e-file your income tax return.

The deadline for filing your income tax return is July 31.

A 15-digit acknowledgement number will be displayed on the screen.

After you file your tax return online on ClearTax, you'll get a confirmation email from both ClearTax and the income tax department with the 15-digit acknowledgement number.

Send ITR-V or e-verify your income tax return.

Once the tax return is e-filed, you can send a 1-page acknowledgement to the income tax department in Bangalore or e-verify your tax return within 120 days from the date of e-filing. This can be done from most Net Banking accounts. Make sure you verify the tax returns, because returns that have not been verified are not processed by the tax department.

Track refund if you're getting one :)

The Income Tax Department is getting faster each year with processing your tax refunds. Taxpayers can expect to get their refund anywhere between just a couple of weeks to a few months.Track your refund right here on ClearTax.

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Frequently Asked Questions

My company deducts all the TDS. Do I still have to file my tax return?

Yes, deducting TDS and filing a tax return are two different things. In fact, you file a tax return to show that you've paid all the tax you needed to pay. The income tax return is also a very useful document when it comes to applying for a loan or visa.

Which income tax return should I select for e filing?

Great question! There are nine forms - ITR 1, 2, 2A, 3, 4, 4S, 5, 6 and 7 for each type of tax situation. Honestly, choosing the correct income tax form is a lot of work. Which is why if you are e filing with ClearTax, we automatically decide the correct income tax return form.

How do I pay tax to the government?

You can pay tax directly on the Income Tax Department website using your Netbanking account with challan 280.

Can I file income tax returns for years I missed?

Yes, in any given financial year, you can file for the last two years. For e.g in FY 2016-17, you can file for both FY 2015-16 and FY 2014-15 online.

What is ITR-V?

ITR-V is a 1-page document that you receive after e-filing your income tax return. You must print, sign and send it to the Income Tax Department within 120 days from e-filing your tax return.

I am salaried and don't have a Form 16. How can I file my tax return?

You can still file on ClearTax without a Form 16. You're just going to need your payslips. Follow the instructions on this guide to e-file without Form 16.

Can I file ITR-1 with exempt agricultural income?

You can file ITR 1 if the agricultural income is up to Rs 5000.For agricultural income exceeding Rs 5000, you have to file ITR 2.To know about ITR 2.Click here.

Is it necessary to attach any documents along with return of income?

ITR return forms are attachment less forms and, hence, the taxpayer is not required to attach any document (like proof of investment, TDS certificates, etc.) along with the return of income (whether filed manually or filed electronically). However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc.

If I have paid excess tax, how will it be refunded to me?

The excess tax can be claimed as refund by filing your Income-tax return. It will be refunded to you by crediting it in your bank account through ECS transfer. Don’t make mistakes in mentioning bank details such as account number,IFSC code etc in ITR form.

Is it necessary to file return of income when I don’t have any positive income?

You must file your return before the due date, if you have sustained loss in the financial year and if you want to carry forward to the subsequent year for adjustment against subsequent years positive income. Loss can be carried forward only if you have filed the return claiming such loss before the due date.

Who can file tax on ClearTax?

As per section 139(1) of the Income Tax Act, 1961 in the country, individuals whose total income during the previous year exceeds the maximum amount not chargeable to tax, should file their income tax returns (ITR). a. Individuals who only have Salary income b. Individuals who have switched jobs (Multiple Form 16)c. Individuals having Income from Capital Gains (mutual funds & stocks), House Property, FD, Interest etc. d. Individuals having Foreign Income (Onsite deputation), Foreign Assets, NRI

Is it mandatory for me to do the ITR efiling or can someone else do it on my behalf?

You can seek the help of chartered accountants and agencies dedicated to ITR filing. It is wiser not to allow anyone to have your PAN and password in order to prevent any kind of fraud. Also you can always take assistance form CA to file IT returns. With ClearTax you can get an expert CA to calculate your tax and e-file your tax return on your behalf. See Prices here

Efiling Income Tax Returns(ITR) is made easy with ClearTax platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

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